ProgrammeResponseClimate Change 2017 - Celgene · The Sustainability Committee holds the highest level of direct responsibility for climate change related activities, strategy and

CDP CDP 2017 Climate Change 2017 Information Request Celgene Corporation

Module: Introduction

Page: Introduction

CC0.1

Introduction Please give a general description and introduction to your organization. Celgene is a multinational biopharmaceutical company committed to improving the lives of patients worldwide. At Celgene, we seek to deliver truly innovative and life-changing therapies for patients, the healthcare system, society and the economy. Our Mission and Vision is building a preeminent global biopharmaceutical company focused on the discovery, development and commercialization of innovative therapies for unmet medical needs in cancer and immune-inflammatory diseases. We continue to research and invest, advancing our own discoveries and scanning the landscape for opportunities to enhance and expand our deep and diverse portfolio of next-generation medicines that hold the potential to change the course of human health. Currently, we have 19 pivotal/phase III programs underway, 40 treatments in clinical trials, 42 programs in pre-clinical development and more than 180 clinical trials ongoing. At the same time we are mindful that Celgene is part of an ecosystem of innovation. Our research and discovery efforts seek to collaborate with and complement the work of medical and academic institutions of excellence, government agencies and regulators, patient advocacy groups and non-governmental organizations and other biopharmaceutical companies. As committed as we are to clinical accomplishment, we are equally committed to patient support, which is a guiding principle at Celgene. We believe all who can benefit from our discoveries should have the opportunity to do so. Celgene puts patients first with industry-leading programs that provide information, for patient support and, to the maximum extent possible, safe access to our innovative therapies.

CC0.2

Reporting Year

Please state the start and end date of the year for which you are reporting data. The current reporting year is the latest/most recent 12-month period for which data is reported. Enter the dates of this year first. We request data for more than one reporting period for some emission accounting questions. Please provide data for the three years prior to the current reporting year if you have not provided this information before, or if this is the first time you have answered a CDP information request. (This does not apply if you have been offered and selected the option of answering the shorter questionnaire). If you are going to provide additional years of data, please give the dates of those reporting periods here. Work backwards from the most recent reporting year. Please enter dates in following format: day(DD)/month(MM)/year(YYYY) (i.e. 31/01/2001).

Enter Periods that will be disclosed

Fri 01 Jan 2016 - Sat 31 Dec 2016

CC0.3

Country list configuration Please select the countries for which you will be supplying data. If you are responding to the Electric Utilities module, this selection will be carried forward to assist you in completing your response.

Select country

United States of America Switzerland Canada France Italy Germany United Kingdom Japan

CC0.4

Currency selection Please select the currency in which you would like to submit your response. All financial information contained in the response should be in this currency. USD($)

CC0.6

Modules As part of the request for information on behalf of investors, companies in the electric utility sector, companies in the automobile and auto component manufacturing sector, companies in the oil and gas sector, companies in the information and communications technology sector (ICT) and companies in the food, beverage and tobacco sector (FBT) should complete supplementary questions in addition to the core questionnaire. If you are in these sector groupings, the corresponding sector modules will not appear among the options of question CC0.6 but will automatically appear in the ORS navigation bar when you save this page. If you want to query your classification, please email [email protected]. If you have not been presented with a sector module that you consider would be appropriate for your company to answer, please select the module below in CC0.6.

Further Information

Module: Management

Page: CC1. Governance

CC1.1

Where is the highest level of direct responsibility for climate change within your organization? Board or individual/sub-set of the Board or other committee appointed by the Board

CC1.1a

Please identify the position of the individual or name of the committee with this responsibility

The Sustainability Committee holds the highest level of direct responsibility for climate change related activities, strategy and direction for Celgene. Richard Bagger, Executive Vice President of Global Corporate Affairs and Market Access, is one of the members of the Executive Committee and reports directly to the Chief Executive Officer. Richard is the chairman of the Sustainability Committee.

CC1.2

Do you provide incentives for the management of climate change issues, including the attainment of targets? Yes

CC1.2a

Please provide further details on the incentives provided for the management of climate change issues

Who is entitled to benefit from these incentives?

The type of incentives

Incentivized performance

indicator

Comment

Executive officer Recognition (non-monetary)

Behavior change related indicator

Communicating Celgene’s sustainability progress, including environmental programs and projects, to stakeholders within and outside the company worldwide.

Executive officer Monetary reward

Behavior change related indicator

Managing the Corporate Responsibility department and including environmental sustainability within individual and group performance portfolios.

Other: Senior Director of Engineering, Construction, and Carbon Management

Monetary reward

Emissions reduction projectEnergy reduction project Efficiency projectBehavior change related indicator

Completion of CDP for Celgene’s environmental footprint Management of Responsibility Report publication on Celgene’s sustainability performance Improved GHG emissions performance Improved GHG, water, and carbon footprint inventory data management Expansion of carbon management program, projects, and initiatives

Other: Employees of Engineering, Construction and Carbon Management Department

Recognition (non-monetary)

Emissions reduction projectEnergy reduction project

Assistance with CDP for Celgene’s environmental footprint Assistance with Responsibility Report publication on Celgene’s sustainability performance Improved GHG emissions performance Improved GHG, water, and carbon footprint inventory data management Meeting energy reduction targets for NJ Clean Energy’s Pay for Performance program

Who is entitled to benefit from these incentives?

The type of incentives

Incentivized performance

indicator

Comment

Efficiency projectBehavior change related indicator

Expansion of carbon management program, projects, and initiatives

Facility managers Recognition (non-monetary)

Emissions reduction projectEnergy reduction project Efficiency project

Assistance with CDP for Celgene’s environmental footprint Assistance with Responsibility Report publication on Celgene’s sustainability performance Improved GHG emissions performance Improved GHG, water, and carbon footprint inventory data management Expansion of carbon management program, projects, and initiatives

Further Information

Page: CC2. Strategy

CC2.1

Please select the option that best describes your risk management procedures with regard to climate change risks and opportunities Integrated into multi-disciplinary company wide risk management processes

CC2.1a

Please provide further details on your risk management procedures with regard to climate change risks and opportunities

Frequency of monitoring

To whom are

results reported?

Geographical areas considered

How far into the future are risks

considered?

Comment

Annually Other committee

The scope of the policy that pertains to climate change risks, opportunities, and risk management pertain to the company on a worldwide scale. As of 2017, Celgene has operations in North America, Europe, Asia, Latin America, South America, Australia, and Africa

3 to 6 years

CC2.1b

Please describe how your risk and opportunity identification processes are applied at both company and asset level Risk management is already a part of Celgene’s corporate policy and risk management efforts will be expanded to develop appropriate sustainability efforts and to enhance environmental compliance. Opportunity management at Celgene is based on observation and analysis of individual markets and the early recognition and evaluation of trends from which opportunities can be identified. Effective management of environmental opportunities and risks is a factor in sustainably protecting Celgene’s assets. At Celgene, opportunities and risks are systematically identified, analyzed, and documented. Risk-relevant information is compiled and reviewed on a regular basis. Celgene has taken an approach to develop appropriate sustainability efforts and to enhance environmental compliance that includes the following steps: 1. Identify opportunities and risks to our business and operations related to sustainability and environmental compliance. 2. Analyze the identified opportunities and risks. 3. Plan and prioritize actions that are needed to address these opportunities and risks. 4. Implement appropriate actions and evaluate the progress of these actions. Each site and business unit is responsible for continual awareness of potential crisis situations that could impact the site and/or business unit. Possible crisis situations can include a wide range of issues. Specific examples included in the policy are regulatory mandates, natural disasters (e.g. earthquakes hurricanes, floods), public service interruption (e.g. electricity, water, air travel, roads, railways), and public health threats. Celgene’s business continuity plans (BCPs) outlines how facilities respond to disasters and includes strategies to support all critical business groups. These plans consist of over thirty groups identified as being critical to Celgene’s business operations, including power for facilities, emergency power distribution, IT communications, and other miscellaneous plans.

CC2.1c

How do you prioritize the risks and opportunities identified?

Our Corporate Responsibility and Sustainability policy addresses environmental risks, opportunities, considerations and strategies at Celgene. This policy recognizes that the following areas of our value chain are potentially affected by climate change: investor expectation, regulatory requirements, local community impact, raw material sourcing, disruptions to the distribution network, production and operations. These topics were identified as priorities from internal and external stakeholder engagement and by observations of company operations during the previous years. As Celgene evolves its Corporate Responsibility and Sustainability policy, additional risks and opportunities will be incorporated into this list. Priority will be given to the aspects/topics that have the greatest potential or observed actual impact on company operations, either positively or negatively.

CC2.1d

Please explain why you do not have a process in place for assessing and managing risks and opportunities from climate change, and whether you plan to introduce such a process in future

Main reason for not having a process

Do you plan to introduce a process?

Comment

CC2.2

Is climate change integrated into your business strategy? Yes

CC2.2a

Please describe the process of how climate change is integrated into your business strategy and any outcomes of this process Climate change is integrated into Celgene business strategy through the cross-functional Sustainability Committee (“the Committee”) and the Corporate Responsibility and Sustainability Policy (“the Policy”). The Committee reviews and approves strategies, programs and projects that are aimed at reducing Celgene global carbon footprint and emissions. In addition, the Committee works across the organization to encourage the adoption of sustainable practices in daily operations through management leadership and employee engagement. The Policy outlines the focus areas that Celgene seeks to align and continuously develop across its global business, including compliance with environmental laws, waste minimization, energy and water conservation, employee awareness and

performance management. These areas are included within the Policy due to observed risk, realized opportunity for enhanced business performance and various externalities (regulation, climate adaptation, etc.) In the immediate-term, the Policy covers initiatives that Celgene can take to create an impact on the triple bottom line (environmental, social and economic aspects), including energy-related and water-related conservation. This include initiatives that we have focused on in terms of our new (and first corporate-wide) quantitative targets, include one focused on decreasing emissions through best practices related to incorporating environmental considerations into all aspects of facility management. One important company strategy is to utilize standards for building operations, such as the U.S. Green Building Council’s Leadership in Energy and Environmental Design (LEED) standards for design and construction of environmentally-positive buildings. This has factored in to all new construction of Celgene buildings including the renovation occurring at our Corporate Headquarters in Summit, purchasing of electricity from certified renewable energy sources, locating Celgene operations within proximity of mass transit, and other environmental-focused aspects to enhance our triple bottom line. In long-term planning, Celgene views climate change aspects, in particular in the areas of supply chain, water, and GHG emissions, as important for Celgene operations and business performance to ensure continued delivery of life-changing therapies to the patients we serve.

CC2.2b

Please explain why climate change is not integrated into your business strategy

CC2.2c

Does your company use an internal price on carbon? No, and we currently don't anticipate doing so in the next 2 years

CC2.2d

Please provide details and examples of how your company uses an internal price on carbon

CC2.3

Do you engage in activities that could either directly or indirectly influence public policy on climate change through any of the following? (tick all that apply) No

CC2.3a

On what issues have you been engaging directly with policy makers?

Focus of legislation

Corporate Position

Details of engagement

Proposed legislative solution

CC2.3b

Are you on the Board of any trade associations or provide funding beyond membership?

CC2.3c

Please enter the details of those trade associations that are likely to take a position on climate change legislation

Trade association

Is your position on climate change consistent with theirs?

Please explain the trade association's position

How have you, or are you attempting to, influence the position?

CC2.3d

Do you publicly disclose a list of all the research organizations that you fund?

CC2.3e

Please provide details of the other engagement activities that you undertake

CC2.3f

What processes do you have in place to ensure that all of your direct and indirect activities that influence policy are consistent with your overall climate change strategy?

CC2.3g

Please explain why you do not engage with policy makers Celgene’s engagement with public policy makers primarily focuses on supporting public policies that help create an environment conductive to biomedical innovation and that ensures patient access to quality health care. This primary focus is reflective of Celgene’s efforts in the biopharmaceutical industry and attention to putting our patients first.

Further Information

Page: CC3. Targets and Initiatives

CC3.1

Did you have an emissions reduction or renewable energy consumption or production target that was active (ongoing or reached completion) in the reporting year? Intensity target Renewable energy consumption and/or production target

CC3.1a

Please provide details of your absolute target

ID

Scope

% of emissions in

scope

% reduction from base year

Base year

Base year emissions covered by

target (metric tonnes CO2e)

Target year

Is this a science-

based target?

Comment

CC3.1b

Please provide details of your intensity target

ID

Scope

% of emissions in scope

% reduction from base

year

Metric

Base year

Normalized base year emissions covered by

target

Target year

Is this a science-based target?

Comment

Int1 Scope 1+2 (market-based) 100% 20%

Metric tonnes CO2e per square foot*

2015 0.00811 2020 No, and we do not anticipate setting one in the next 2 years

CC3.1c

Please also indicate what change in absolute emissions this intensity target reflects

ID

Direction of change anticipated in absolute Scope 1+2 emissions at

target completion?

% change anticipated in absolute Scope 1+2

emissions

Direction of change anticipated in absolute Scope 3 emissions at target

completion?

% change anticipated in absolute Scope 3

emissions

Comment

Int1 Decrease 12

CC3.1d

Please provide details of your renewable energy consumption and/or production target

ID

Energy types

covered by target

Base year

Base year energy for energy type covered

(MWh)

% renewable

energy in base year

Target year

% renewable energy in target

year

Comment

RE1 Electricity consumption 2015 28847 42% 2020 46%

CC3.1e

For all of your targets, please provide details on the progress made in the reporting year

ID

% complete

(time)

% complete (emissions or

renewable energy)

Comment

Int1 20% 0%

Note that the comparison is based on 2015 Scope 1 and Scope 2 emissions of 10,390 and 14,523 metric tons CO2e, respectively, for a grand total of 24,947 metric tons CO2e. The Scope 1 emissions value was entered incorrectly in last year’s CDP submittal (entered as a duplicate of 14,523 metric tons CO2e) in Secion CC7.1 and CC8.3. The Scope 1 breakdown in section CC9 contained accurate data. The quantity of Scope 1 and Scope 2 emissions increased between 2015 and 2016 by 23% based on normalization compared to facility area

RE1 20% 100% We have exceeded this goal and the total percent complete is 127%.

CC3.1f

Please explain (i) why you do not have a target; and (ii) forecast how your emissions will change over the next five years

CC3.2

Do you classify any of your existing goods and/or services as low carbon products or do they enable a third party to avoid GHG emissions? No

CC3.2a

Please provide details of your products and/or services that you classify as low carbon products or that enable a third party to avoid GHG emissions

Level of

aggregation

Description of product/Group

of products

Are you reporting

low carbon product/s or

avoided emissions?

Taxonomy, project or methodology used to classify product/s as

low carbon or to calculate avoided

emissions

% revenue from

low carbon product/s in the reporting year

% R&D in low

carbon product/s in the reporting

year

Comment

CC3.3

Did you have emissions reduction initiatives that were active within the reporting year (this can include those in the planning and/or implementation phases) Yes

CC3.3a

Please identify the total number of projects at each stage of development, and for those in the implementation stages, the estimated CO2e savings

Stage of development

Number of projects

Total estimated annual CO2e savings in metric tonnes CO2e (only for rows marked *)

Under investigation To be implemented* 3 525 Implementation commenced* Implemented* 1 225 Not to be implemented

CC3.3b

For those initiatives implemented in the reporting year, please provide details in the table below

Activity type

Description of activity

Estimated annual CO2e

savings (metric tonnes CO2e)

Scope

Voluntary/ Mandatory

Annual monetary savings

(unit currency

- as specified in CC0.4)

Investment required

(unit currency -

as specified in CC0.4)

Payback period

Estimated lifetime of

the initiative

Comment

Energy efficiency: Building services

Replacement of significant quantity of induction fixtures located in a large parking garage with LED fixtures

112

Scope 2 (market-based)

Voluntary 28000 110000 4-10

years 16-20 years

Activity type

Description of activity

Estimated annual CO2e

savings (metric tonnes CO2e)

Scope

Voluntary/ Mandatory

Annual monetary savings

(unit currency

- as specified in CC0.4)

Investment required

(unit currency -

as specified in CC0.4)

Payback period

Estimated lifetime of

the initiative

Comment


Replacement of significant quantity of light bulbs with LED bulbs and fixtures


Voluntary 50000

Low carbon energy purchase

Purchase of green power from certified hydropower for our Boudry, Switzerland office (identified in Switzerland as “hydraulic structures”). This is in addition to the purchase of green power from certified solar power sources

227


Voluntary


Replacement of three aging chillers at the Phoenix, AZ facility 525


Voluntary 50000 190000 4-10

years 21-30 years

CC3.3c

What methods do you use to drive investment in emissions reduction activities?

Method

Comment

Compliance with regulatory requirements/standards Dedicated budget for energy efficiency

Method

Comment

Dedicated budget for other emissions reduction activities Employee engagement

CC3.3d

If you do not have any emissions reduction initiatives, please explain why not

Further Information

Page: CC4. Communication

CC4.1

Have you published information about your organization’s response to climate change and GHG emissions performance for this reporting year in places other than in your CDP response? If so, please attach the publication(s)

Publication

Status

Page/Section reference

Attach the document

Comment

In voluntary communications

Underway - previous year attached

The Environmental and Sustainability chapter (pages 67-79) of the attached Celgene Corporate Responsibility Report discusses Celgene’s energy, water, waste, transportation, compliance, and carbon footprint performance. This report can also be accessed at Celgene’s Responsibility website at www.celgene.com/responsibility

https://www.cdp.net/sites/2017/82/2982/Climate Change 2017/Shared Documents/Attachments/CC4.1/celgene-responsibility 16.pdf

Further Information

Module: Risks and Opportunities

Page: CC5. Climate Change Risks

CC5.1

Have you identified any inherent climate change risks that have the potential to generate a substantive change in your business operations, revenue or expenditure? Tick all that apply Risks driven by changes in regulation Risks driven by changes in physical climate parameters Risks driven by changes in other climate-related developments

CC5.1a

Please describe your inherent risks that are driven by changes in regulation

Risk driver

Description

Potential impact

Timeframe

Direct/Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

Cap and trade schemes

AB32 California Cap and Trade Program limits greenhouse gas emissions from large sources, including utilities.

Increased operational cost

3 to 6 years Direct Very likely Medium

Increase in electricity and natural gas costs associated with energy purchasing, which could be on the order of $20-100,000 per

The risk is being managed through energy reduction measures and employee energy conservation awareness

Equipment purchasing costs, building upgrades, and incorporation of these energy-efficient projects within

Risk driver

Description

Potential impact

Timeframe

Direct/Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

Although this program does not directly affect our facilities since Celgene facilities are not considered to be large sources of emissions under this program. This regulation will likely cause an increase in electricity and natural gas costs associated with energy purchasing for our facility in CA.

year training. Additionally, we are planning on using a measurement and verification plan to evaluate building and/or energy system performance, purchase electricity from renewable energy sources, procure energy efficient equipment that is Energy-Star rated or rated through a certified standard, investigate optimizations to the HVAC systems and Chilled Water systems, and other energy-saving projects

the design and construction of the new San Diego facility

Voluntary agreements

Celgene International

Increased capital cost >6 years Direct Very likely Low Increased

capital costs The risk is being managed

Equipment replacement

Risk driver

Description

Potential impact

Timeframe

Direct/Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

Sarl (Boudry facility) joined a voluntary energy savings program of the Swiss Private Sector Energy Agency. As part of this agreement, the Boudry facility commits itself to the active reduction of CO2 emissions and to the optimization of energy efficiency. The Boudry facility has set an annual energy saving objective, agreeing that the savings are to be achieved on the basis of the effectiveness of the measures undertaken. Ten measures have been defined for 3 years

required to meet agreements. This greatly depends upon the capital equipment needed to meet the requirements set forth by the agreements and can be on the order of $50-100,000 per year

by evaluation of return on investment for each capital improvement project

and upgrade costs

Risk driver

Description

Potential impact

Timeframe

Direct/Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

according to a signed agreement with the Agency. Measures that have been implemented in 2012 include optimization of air handling of offices and fitness center at the Boudry facility.

General environmental regulations, including planning

The New Jersey Global Warming Response Act set statewide limits on greenhouse gas emissions in July 2007. The law mandates reductions in greenhouse gas emissions to 1990 levels by 2020, approximately a 20 percent reduction below estimated 2020

Increased capital cost Unknown Direct Unknown Medium

Increased capital and operating costs associated with various state implemented measures taken to reduce GHG emissions (e.g. low emission vehicle requirements, renewable energy portfolio standards, etc). This greatly depends upon the capital equipment needed to meet the

The risk is being managed through energy reduction measures and employee energy conservation awareness training. Additionally, we are planning on using a measurement and verification plan to evaluate building and/or energy system performance,

Equipment replacement costs, building upgrades, employee energy conservation training. A general estimate, based upon past year’s budgeting and actual spend, is $25,000 per year for general practices and upwards of $100,000 for capital

Risk driver

Description

Potential impact

Timeframe

Direct/Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

business-as-usual emissions, followed by a further reduction of emissions to 80 percent below 2006 levels by 2050.Celgene is not currently directly impacted by this act but could be impacted directly or indirectly by various state programs implemented to meet these limits in the future as Celgene has several facilities in NJ. Impacts could include increases in operating costs (fuel and electricity costs rise from increases in regulation and

requirements set forth by the agreements and can be on the order of $50-100,000 per year

purchase electricity from renewable energy sources, procure energy efficient equipment that is Energy-Star rated or rated through a certified standard, investigate optimizations to the HVAC systems and Chilled Water systems, and other energy-saving projects

expenses

Risk driver

Description

Potential impact

Timeframe

Direct/Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

required reductions in GHG emissions) and increases in capital costs (resulting from requirements to comply with GHG reduction projects) Celgene will continue to monitor this risk.

Carbon taxes

Effective in 2008 for the Switzerland (Boudry facility). The Swiss carbon tax applies to natural gas and heating oil but does not apply to transport fuels, wood, or biomass.


Up to 1 year Direct Virtually

certain Medium

Increased operating costs associated with purchasing natural gas. Capital costs associated with equipment replacement and building upgrades to reduce natural gas usage.

Continued energy reduction measures and employee energy conservation awareness training, continued evaluation of return on investment, continuing use and increases in wood heating to reduce natural gas fuel purchases

There are costs associated with equipment replacements, building upgrades, and employee energy conservation training.

Risk driver

Description

Potential impact

Timeframe

Direct/Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

Carbon taxes

Federal, state, and local regulations' establishment of a price on GHG emissions or carbon in the US can lead to increased operational costs in a similar fashion to taxes that are already incurred by businesses. It is difficult to estimate the potential cost of complying with unknowable GHG legislation. It is not possible at this time to estimate the cost of these taxes.

Increased operational cost >6 years Direct

About as likely as not

Low-medium

Increased operating costs associated with purchasing natural gas. Capital costs associated with equipment replacement and building upgrades to reduce natural gas usage. Various other expenses associated with purchasing energy, fuels, water, materials that incorporate carbon footprint/impact into its tax structure

Continued energy reduction measures and employee energy conservation awareness training, continued evaluation of return on investment, continuing use and increases in wood heating to reduce natural gas fuel purchases

There are costs associated with equipment replacements, building upgrades, and employee energy conservation training. However Celgene has not incurred any expenses to date because of carbon taxes and the management of them in the United States

Air pollution limits

Limits on emissions could be imposed in the US as a


3 to 6 years Direct Likely Low

Air pollutions limits for various types of pollutants could be introduced

Continued energy reduction measures, monitoring of

The cost of emission limits has not been quantified because none

Risk driver

Description

Potential impact

Timeframe

Direct/Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

regulatory alternative to natural energy and climate policy

for control and operating equipment. Non-compliance due to equipment and monitoring errors/failures with these limits would cause financial penalties.

refrigerant leaks and replacement of harmful refrigerants with alternatives

apply at this time

International agreements

International regulations and agreements aimed at emission limits within countries could restrain the company production and operations in certain locations. The impact to the company's supply chain could drive up costs with regards to obtaining raw materials or intermediates.

Reduction/disruption in production capacity

>6 years Direct Likely Low

The potential financial risks of international agreements could impact production costs, but the difficulty exists to put actual costs to these risks across the global supply chain.

Celgene is reviewing international, regional, and country-wide requirements. Our continued energy reduction and conservation measures will help anticipate more stringent controls and regulations before they come into effect.

There are costs associated with equipment replacements, building upgrades, and employee energy conservation training

Uncertainty surrounding

Federal or state legislation


3 to 6 years Direct More likely

than not Low-medium

Financial implications are

Celgene will continue to

Due to the uncertainty

Risk driver

Description

Potential impact

Timeframe

Direct/Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

new regulation

that mandates emission reductions may risk various facilities, especially laboratory and manufacturing which produce the bulk of our greenhouse gas emissions annually. The impact would be to increase measures for various facility assets and operational expenses

uncertain. It is difficult to estimate the potential direct implications that is needed to comply with future regulations and legislation.

track and manage regulatory developments and associated risks. The main avenue to deal with these environmental risks is to focus on reducing our company's environmental footprint with emphasis on energy consumption and production of emissions.

surrounding these regulations, the operational, capital, and maintenance expenses may vary widely depending upon numerous factors.

Uncertainty surrounding new regulation

Federal or state legislation that mandates emission reductions may risk various facilities, especially laboratory and manufacturing which produce the bulk of our greenhouse gas emissions annually. The

Increased operational cost >6 years Direct More likely

than not Low-medium

Financial implications are uncertain. It is difficult to estimate the potential direct implications that is needed to comply with future regulations and legislation.

Celgene will continue to track and manage regulatory developments and associated risks. The main avenue to deal with these environmental risks is to focus on reducing our company's environmental

Due to the uncertainty surrounding these regulations, the operational, capital, and maintenance expenses may vary widely depending upon numerous factors.

Risk driver

Description

Potential impact

Timeframe

Direct/Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

impact would be to increase measures for various facility assets and operational expenses

footprint with emphasis on energy consumption and production of emissions.

CC5.1b

Please describe your inherent risks that are driven by changes in physical climate parameters

Risk driver

Description

Potential impact

Timeframe

Direct/Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

Tropical cyclones (hurricanes and typhoons)

In 2012 Celgene experienced Hurricane Sandy which impacted our US facilities in New Jersey. Celgene did not experience business critical interruptions in product

Other: Temporary staff relocation

1 to 3 years Direct Likely Medium

Celgene’s business operations in New Jersey were impacted in 2012 by Hurricane Sandy. Celgene did not experience business critical interruptions. There was a significant loss of employee working

Celgene is managing this risk by upgrading their emergency power systems at Summit to provide increased backup capacity to cover seventy percent of the site operations.

The costs associated with these emergency power system upgrades do not exceed three million dollars. Additional initiatives for emergency power and emergency

Risk driver

Description

Potential impact

Timeframe

Direct/Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

distribution or call center operations, however minor business operations were impacted. Celgene’s corporate headquarters in Summit is continuing to upgrade their emergency power systems to provide increased backup capacity to cover seventy percent of the site operations.

hours, some equipment damage, and some research activities lost physical samples. These impacts can not be adequately quantified but do represent a financial loss because of this weather event.

preparedness are anticipated to be integrated within the facility planning budget.

Uncertainty of physical risks

Extreme weather events such as droughts in California could affect several of our other facilities. All of our facilities have adequate emergency backup generators to address


3 to 6 years Direct


Unknown

Potential loss of product or inability to supply the market could have financial implications

Celgene has already taken measures to protect operations from identifiable risks and determined that their other facilities (all except Summit) have adequate

There are no current costs anticipated to manage these risks at this time.

Risk driver

Description

Potential impact

Timeframe

Direct/Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

potential power outages associated with extreme weather events.

emergency backup generators to address potential power outages associated with extreme weather events.

Induced changes in natural resources

Various resources could be impacted by climate change. This includes food, water, and natural (raw) materials that are involved in Celgene's operations.



than not Low-medium

Financial implications are uncertain. Induced changes in natural resources could impact various commodities used within Celgene's operations and include food, water, and energy. The lack of natural resources could impact numerous operations and business development

No actions taken yet. Celgene is evaluating its Supply Chain strategies and management. Celgene is also evaluating risks of water shortages at facilities with appropriate planning for disruptions that may occur within operations if natural resource disruptions occur.



Extreme weather events such as droughts in


>6 years Direct About as likely as not

Unknown

Potential loss of product or inability to supply the market could

Celgene has already taken measures to protect

There are no current costs anticipated to manage these

Risk driver

Description

Potential impact

Timeframe

Direct/Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

Arizona or typhoons in California could affect several of our other facilities. All of our facilities have adequate emergency backup generators to address potential power outages associated with extreme weather events.

have financial implications

operations from identifiable risks and determined that their other facilities (all except Summit) have adequate emergency backup generators to address potential power outages associated with extreme weather events.

risks at this time.


Extreme weather events such as droughts, floods, hurricanes or typhoons, could affect our supply chain.


3 to 6 years

Indirect (Supply chain)


Unknown

Numerous physical events and problems could impact various commodities used within Celgene's operations and include food, water, and energy. These problems could impact Celgene's supply chain and visa vie Celgene's own operations

No actions taken yet. Celgene is evaluating its Supply Chain strategies and management


Risk driver

Description

Potential impact

Timeframe

Direct/Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

and business development


Extreme weather events such as droughts, floods, hurricanes or typhoons, could affect our supply chain.


>6 years Indirect (Supply chain)


Unknown

Numerous physical events and problems could impact various commodities used within Celgene's operations and include food, water, and energy. These problems could impact Celgene's supply chain and visa vie Celgene's own operations and business development

No actions taken yet. Celgene is evaluating its Supply Chain strategies and management


Change in precipitation pattern

Changes in precipitation could result in changes in water supply and the ability to discharge treated wastewater


3 to 6 years Direct Likely Low-

medium

Changes in precipitation patterns could result in interruptions to the availability and quality of water. Operations (manufacturing, laboratory research, general office, etc.) depends upon clean water

No actions taken yet. Celgene is evaluating its Water strategies and management and water risks due to actual and recorded shortages at its facilities


Induced Various Increased 3 to 6 Indirect More likely Low- Financial No actions There are no

Risk driver

Description

Potential impact

Timeframe

Direct/Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

changes in natural resources

resources could be impacted by climate change. This includes food, water, and natural (raw) materials that are involved in Celgene's operations that are obtained through its supply chain.

operational cost years (Supply chain)

than not medium implications are uncertain. Induced changes in natural resources could impact various commodities used within Celgene's operations and include food, water, and energy. The lack of natural resources could impact numerous Celgene's supply chain and ability to deliver products.

taken yet. Celgene is evaluating its Supply Chain strategies and management. Celgene is also evaluating risks of water shortages at facilities with appropriate planning for disruptions that may occur within operations if natural resource disruptions occur.

current costs anticipated to manage these risks at this time.


Various resources could be impacted by climate change. This includes food, water, and natural (raw) materials that are involved in Celgene's operations.

>6 years Direct More likely than not

Low-medium

Financial implications are uncertain. Induced changes in natural resources could impact various commodities used within Celgene's operations and include food, water, and energy. The lack of natural resources could

No actions taken yet. Celgene is evaluating its Supply Chain strategies and management. Celgene is also evaluating risks of water shortages at facilities with appropriate planning for disruptions that


Risk driver

Description

Potential impact

Timeframe

Direct/Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

impact numerous operations and business development.

may occur within operations if natural resource disruptions occur.


Various resources could be impacted by climate change. This includes food, water, and natural (raw) materials that are involved in Celgene's operations that are obtained through its supply chain.


>6 years Indirect (Supply chain)

More likely than not

Low-medium

Financial implications are uncertain. Induced changes in natural resources could impact various commodities used within Celgene's operations and include food, water, and energy. The lack of natural resources could impact numerous Celgene's supply chain and ability to deliver products.

No actions taken yet. Celgene is evaluating its Supply Chain strategies and management. Celgene is also evaluating risks of water shortages at facilities with appropriate planning for disruptions that may occur within operations if natural resource disruptions occur.


CC5.1c

Please describe your inherent risks that are driven by changes in other climate-related developments

Risk driver

Description

Potential impact

Timeframe

Direct/Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

Reputation

As global concern about the impacts of climate change continues to rise, companies are facing increasing pressure to actively participate in efforts to reduce their emissions of greenhouse gases. As a publicly listed company, Celgene recognizes that some financial shareholders are increasingly interested in the climate change policies and practices of the companies in which they invest. Other stakeholders including customers, consumers, employees, government agencies and local communities may also be concerned if Celgene does not participate effectively in reducing and

Reduced stock price (market valuation)


Low

Celgene is aware that other companies have faced shareholder criticism for failing to make meaningful commitments toward sustainability and/or for a lack of transparency regarding their efforts and commitments in this respect. We do not consider it possible to place a quantitative financial value on the implications of these risks; however a reduction in the value of our stock could reduce our available capital and potentially impact our ability to continue our current growth trajectory.

Celgene is addressing environmental sustainability through our efforts to manage our energy and water use, increase energy efficiency and track GHG emissions, which should serve to protect our reputation with stakeholders. Specific actions we are taking to ensure that our stakeholders are made aware of our efforts include annual response to the CDP Climate Change and Water questionnaires, and disclosure through our Responsibility Report

There are costs associated with completing these disclosures that have not exceeded half a million dollars

Risk driver

Description

Potential impact

Timeframe

Direct/Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

planning for climate change impacts. These considerations are relevant to all regions where Celgene does business, but particularly in California where there is a high level of public awareness and concern about environmental issues.

Other drivers

Celgene does not fully understand all of the inherit risks of climate change on its business, its supply chain, and its employees

Other: >6 years Direct Unknown Low

Celgene may continue to not fully understand all of the risks associted with climate change and its impact on everything from the supply chain through all of its business operations. This may cause business disruptions that incur unpredictable financial impacts on either a small or large scale

Celgene is addressing environmental sustainability through our efforts to manage our energy and water use, increase energy efficiency and track GHG emissions, which should serve to protect our reputation with stakeholders. Specific actions we are taking to ensure that our stakeholders are made aware of our

The costs associated with this risks are related to environmental planning, climate research, and tied into the various environmental programs and projects that are being planned or in the implementation phase. These plans are small compared to our overall business performance, and are budgeted for less than one

Risk driver

Description

Potential impact

Timeframe

Direct/Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

compared to our current performance

efforts include annual response to the CDP Climate Change and Water questionnaires, and disclosure through our Responsibility Report

million dollars per year

Other drivers

Celgene's employees are directly affected by health-related impacts of climate change and associated environmental problems

Other: >6 years Direct Unknown Low

The financial implications of health-related impacts due to climate change and environmental problems can not be quantified at this time as there is a lack of both qualitative and quantitative data.

Celgene does not have management plans in place for health-related problems due to climate change. However Celgene sponsors numerous programs related to health awareness and healthy living strategies.

The costs associated with this risks are related to environmental planning, climate research, and tied into the various environmental programs and projects that are being planned or in the implementation phase. These plans are small compared to our overall business performance, and are budgeted for less than one million dollars per year

CC5.1d

Please explain why you do not consider your company to be exposed to inherent risks driven by changes in regulation that have the potential to generate a substantive change in your business operations, revenue or expenditure

CC5.1e

Please explain why you do not consider your company to be exposed to inherent risks driven by changes in physical climate parameters that have the potential to generate a substantive change in your business operations, revenue or expenditure

CC5.1f

Please explain why you do not consider your company to be exposed to inherent risks driven by changes in other climate-related developments that have the potential to generate a substantive change in your business operations, revenue or expenditure

Further Information

Page: CC6. Climate Change Opportunities

CC6.1

Have you identified any inherent climate change opportunities that have the potential to generate a substantive change in your business operations, revenue or expenditure? Tick all that apply Opportunities driven by changes in regulation Opportunities driven by changes in physical climate parameters

Opportunities driven by changes in other climate-related developments

CC6.1a

Please describe your inherent opportunities that are driven by changes in regulation

Opportunity driver

Description

Potential impact

Timeframe

Direct/Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

Cap and trade schemes

AB32 California Cap and Trade Program limits greenhouse gas emissions from large sources, including utilities. This regulation will likely cause an increase in electricity and natural gas costs associated with energy purchasing. The anticipated market response is reduction in energy usage, resulting in increased availability of carbon offsets.

Reduced operational costs


than not Low

Reduction in carbon offset price, which is currently unknown because Celgene does not participate in carbon offset purchasing or carbon trading

Continued monitoring of AB32 implementation and evaluation of carbon offset price

There are minimal costs associated with monitoring this activity at this time.

Carbon taxes

Effective in 2008.

Reduced operational

Up to 1 year Direct Virtually

certain Medium Reduction in carbon tax and

Celgene International Sarl

The energy savings

Opportunity driver

Description

Potential impact

Timeframe

Direct/Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

Switzerland. One third of carbon tax was allocated to climate friendly building renovations, use of renewable energy and building engineering. The Swiss carbon tax applies to natural gas and heating oil but does not apply to transport fuels, wood, or biomass and its revenues are recycled back to consumers and businesses. Companies are allowed to exempt themselves from the tax by participating in a Swiss cap-and-trade emissions trading scheme where they voluntarily commit to legally binding

costs reductions in energy consumption. Our reduction efforts for energy consumption have incurred financial expenses that greatly depend upon the type and scale of the project or initiative.

(Boudry facility) joined a voluntary energy savings program of the Swiss Private Sector Energy Agency. As part of this agreement, the Boudry facility commits itself to the active reduction of CO2 emissions and to the optimization of energy efficiency.

realized help offset the costs associated with these activities

Opportunity driver

Description

Potential impact

Timeframe

Direct/Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

targets to reduce their CO2 emissions.

Fuel/energy taxes and regulations

As the number of taxes related to energy increase, companies can increase their energy efficiency and performance through numerous methods. Projects that are design to reduce energy demand and consumption can offset the higher costs from any future energy and/or fuel taxes from regulation.


3 to 6 years Direct Virtually

certain Low

High taxes on fuel and energy consumption proportionally translates to higher operating costs. This could increase facility operational costs by 10-20% of current expenses (estimated)

The risk is being managed through energy reduction measures and employee energy conservation awareness training. Additionally, we are planning on using a measurement and verification plan to evaluate building and/or energy system performance, purchase electricity from renewable energy sources, procure energy efficient equipment that is Energy-Star rated or rated through a certified standard, investigate optimizations to the HVAC systems and Chilled Water systems, and other energy-

Equipment replacement costs, building upgrades, employee energy conservation training. A general estimate, based upon past year’s budgeting and actual spend, is $25,000 per year for general practices and upwards of $100,000 for capital expenses

Opportunity driver

Description

Potential impact

Timeframe

Direct/Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

saving projects

Fuel/energy taxes and regulations

As the number of taxes related to energy increase, companies can increase their energy efficiency and performance through numerous methods. Projects that are design to reduce energy demand and consumption can offset the higher costs from any future energy and/or fuel taxes from regulation.


3 to 6 years

Indirect (Supply chain)

Virtually certain Medium

High taxes on fuel and energy consumption proportionally translates to higher operating costs. This could increase facility operational costs by 10-20% of current expenses (estimated)

The risk is being managed through energy reduction measures and employee energy conservation awareness training. Additionally, we are planning on using a measurement and verification plan to evaluate building and/or energy system performance, purchase electricity from renewable energy sources, procure energy efficient equipment that is Energy-Star rated or rated through a certified standard, investigate optimizations to the HVAC systems and Chilled Water systems, and other energy-saving projects

Equipment replacement costs, building upgrades, employee energy conservation training. A general estimate, based upon past year’s budgeting and actual spend, is $25,000 per year for general practices and upwards of $100,000 for capital expenses.

Product Consumer Reduced 1 to 3 Direct Virtually Low Product Continued energy Equipment

Opportunity driver

Description

Potential impact

Timeframe

Direct/Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

efficiency regulations and standards

demand (from individuals, companies, and even the government) continues to increase for products that are more sustainable and create a lower net impact upon the environment. The supply of these products will increase that allow companies to reduce demand and associated expenses for energy, water, and possibly event material consumption.

operational costs

years certain efficiency translates to opportunities for companies to reduce demand for energy, water, materials, etc. with a proportional reductions in financial expenses.

reduction measures and employee energy conservation awareness training, Continued evaluation of return on investment, Investment with Energy Star rated equipment, Incorporation of LEED strategies for new building design and renovation which include acquisition of products deemed efficient from multiple standards.

replacement costs, building upgrades, employee energy conservation training.

CC6.1b

Please describe your inherent opportunities that are driven by changes in physical climate parameters

Opportunity driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management


The potential fluctuations in the availability and quality of natural resources, especially water, can drive efficiency measures in facilities. As these efficiency measures are utilized in facilities, and even in facilities where there are no potential changes in natural resources, realized expenses could decrease for the consumption of these natural resources.



Low

Financial implications are uncertain. Induced changes in natural resources could impact various commodities used within Celgene's operations and include food, water, and energy. The lack of natural resources could impact numerous operations and business development.

Continued energy reduction measures and employee energy conservation awareness training, continued evaluation of return on investment, continuing use and increases in wood heating to reduce natural gas fuel purchases.

Equipment replacement costs, building upgrades, employee energy conservation training.

CC6.1c

Please describe your inherent opportunities that are driven by changes in other climate-related developments

Opportunity driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

Reputation Companies that do Increased >6 years Direct About as Low We currently Celgene is There are

Opportunity driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

their part to address environmental issues, such as the effects of climate change and the depletion of natural resources will enhance their reputation, improve performance and gain competitive advantage. Celgene is addressing environmental sustainability through our commitment to environmental responsibility. Celgene is managing and measuring our environmental impacts and communicating these through CDP and GRI annual reporting.

stock price (market valuation)

likely as not

do not know the full financial implications of climate related opportunities associated with our reputation.

addressing environmental sustainability through our efforts to manage our energy and water use, increase energy efficiency and track GHG emissions, which should serve to protect our reputation with stakeholders. Specific actions we are taking to ensure that our stakeholders are made aware of our efforts include annual response to the CDP Climate Change and Water questionnaires, and disclosure through our Responsibility Report.

costs associated with completing these disclosures that have not exceeded half a million dollars

CC6.1d

Please explain why you do not consider your company to be exposed to inherent opportunities driven by changes in regulation that have the potential to generate a substantive change in your business operations, revenue or expenditure

CC6.1e

Please explain why you do not consider your company to be exposed to inherent opportunities driven by changes in physical climate parameters that have the potential to generate a substantive change in your business operations, revenue or expenditure

CC6.1f

Please explain why you do not consider your company to be exposed to inherent opportunities driven by changes in other climate-related developments that have the potential to generate a substantive change in your business operations, revenue or expenditure

Further Information

Module: GHG Emissions Accounting, Energy and Fuel Use, and Trading

Page: CC7. Emissions Methodology

CC7.1

Please provide your base year and base year emissions (Scopes 1 and 2)

Scope

Base year

Base year emissions (metric tonnes CO2e)

Scope 1 Thu 01 Jan 2015 - Thu 31 Dec 2015 10390.14

Scope

Base year

Base year emissions (metric tonnes CO2e)

Scope 2 (location-based) Thu 01 Jan 2015 - Thu 31 Dec 2015

25545.85

Scope 2 (market-based) Thu 01 Jan 2015 - Thu 31 Dec 2015

14523.08

CC7.2

Please give the name of the standard, protocol or methodology you have used to collect activity data and calculate Scope 1 and Scope 2 emissions

Please select the published methodologies that you use

IPCC Guidelines for National Greenhouse Gas Inventories, 2006 The Climate Registry: General Reporting Protocol The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised Edition) US EPA Climate Leaders: Direct HFC and PFC Emissions from Use of Refrigeration and Air Conditioning Equipment

CC7.2a

If you have selected "Other" in CC7.2 please provide details of the standard, protocol or methodology you have used to collect activity data and calculate Scope 1 and Scope 2 emissions

CC7.3

Please give the source for the global warming potentials you have used

Gas

Reference

CO2 IPCC Fourth Assessment Report (AR4 - 100 year) CH4 IPCC Fourth Assessment Report (AR4 - 100 year) N2O IPCC Fourth Assessment Report (AR4 - 100 year) HFCs Other: • The Climate Registry: General Reporting Protocol

CC7.4

Please give the emissions factors you have applied and their origin; alternatively, please attach an Excel spreadsheet with this data at the bottom of this page

Fuel/Material/Energy

Emission Factor

Unit

Reference

Natural gas 0.054 Other: kg/scf The Climate Registry, General Reporting Protocol, April 2015, Tables 12.1 and 12.2

Natural gas 1 Other: gCH4/MMBtu

The Climate Registry, General Reporting Protocol, April 2015, Table 12.9

Natural gas 0.1 Other: gN2O/MMBtu


Distillate fuel oil No 2 428.67 Other: kg/barrel The Climate Registry, General Reporting Protocol, April 2015, Tables 12.1 and 12.2

Distillate fuel oil No 2 3 Other: gCH4/MMBtu


Distillate fuel oil No 2 0.6 Other: gN2O/MMBtu


Fuel/Material/Energy

Emission Factor

Unit

Reference

Wood or wood waste 1639.62 Other: kg CO2/ton The Climate Registry, General Reporting Protocol, April 2015, Tables 12.1 and 12.2

Wood or wood waste 30 Other: gCH4/MMBtu


Wood or wood waste 4.2 Other: gN2O/MMBtu


Further Information

Page: CC8. Emissions Data - (1 Jan 2016 - 31 Dec 2016)

CC8.1

Please select the boundary you are using for your Scope 1 and 2 greenhouse gas inventory Operational control

CC8.2

Please provide your gross global Scope 1 emissions figures in metric tonnes CO2e 18811.1

CC8.3

Please describe your approach to reporting Scope 2 emissions

Scope 2, location-based

Scope 2, market-based

Comment

We are reporting a Scope 2, location-based figure We are reporting a Scope 2, market-based figure

CC8.3a

Please provide your gross global Scope 2 emissions figures in metric tonnes CO2e


Scope 2, market-based (if applicable)

Comment

39545.64 13361.13

CC8.4

Are there any sources (e.g. facilities, specific GHGs, activities, geographies, etc.) of Scope 1 and Scope 2 emissions that are within your selected reporting boundary which are not included in your disclosure? No

CC8.4a

Please provide details of the sources of Scope 1 and Scope 2 emissions that are within your selected reporting boundary which are not included in your disclosure

Source

Relevance of Scope 1 emissions from this

source

Relevance of location-based Scope 2 emissions from this

source

Relevance of market-based Scope 2

emissions from this source (if applicable)

Explain why the source is excluded

CC8.5

Please estimate the level of uncertainty of the total gross global Scope 1 and 2 emissions figures that you have supplied and specify the sources of uncertainty in your data gathering, handling and calculations

Scope

Uncertainty range

Main sources of

uncertainty

Please expand on the uncertainty in your data

Scope 1 More than 5% but less than or equal to 10%

Assumptions Metering/ Measurement Constraints Data Management

Utility metering data, used to collect natural gas usage activity data comprising the majority of Scope 1 emissions, has minor uncertainty associated with equipment accuracy. Some of the natural gas quantities have been calculated using referenced estimations that may not accurately reflect the actual consumption at the facilities. Some refrigerant emissions are based on estimates for equipment leakage rates rather than actual data and have a much greater degree of uncertainty. The majority of the fuel oil usage data is metered but a portion of the fuel oil usage data is estimated based upon fuel purchase records and equipment run times resulting in some uncertainty. Although a minor source of emissions, gasoline usage for mobile sources is estimated based upon mileage and fuel efficiency estimates. A small potential for uncertainty also lies in data management practices as the activity data is annually transferred from invoicing records to data collection spreadsheets and then to calculation spreadsheets.

Scope 2 (location-based)

More than 5% but less than or equal to 10%

Assumptions Metering/ Measurement Constraints Data Management

Utility metering data, used to collect natural gas usage activity data comprising the majority of Scope 1 emissions, has minor uncertainty associated with equipment accuracy. Some of the electricity quantities have been calculated using referenced estimations that may not accurately reflect the actual consumption at the facilities. A small potential for uncertainty also lies in data management practices as the activity data is annually transferred from invoicing records to data collection spreadsheets and then to calculation spreadsheets.


More than 5% but less than or equal to 10%

Assumptions Metering/ Measurement

Utility metering data, used to collect natural gas usage activity data comprising the majority of Scope 1 emissions, has minor uncertainty associated with equipment accuracy. Some of the electricity quantities have been calculated using referenced estimations that may not accurately reflect the actual

Scope

Uncertainty range

Main sources of uncertainty

Please expand on the uncertainty in your data

Constraints Data Management

consumption at the facilities. A small potential for uncertainty also lies in data management practices as the activity data is annually transferred from invoicing records to data collection spreadsheets and then to calculation spreadsheets.

CC8.6

Please indicate the verification/assurance status that applies to your reported Scope 1 emissions Third party verification or assurance process in place

CC8.6a

Please provide further details of the verification/assurance undertaken for your Scope 1 emissions, and attach the relevant statements

Verification

or assurance cycle in place

Status in

the current reporting

year

Type of verification

or assurance

Attach the statement

Page/section

reference

Relevant standard

Proportion of reported

Scope 1 emissions verified (%)

Annual process Complete Limited

assurance

https://www.cdp.net/sites/2017/82/2982/Climate Change 2017/Shared Documents/Attachments/CC8.6a/LRQA-Celgene CY2016 Assurance Statement-060717-ASRauthorized.pdf

1-2 ISO14064-3 100

CC8.6b

Please provide further details of the regulatory regime to which you are complying that specifies the use of Continuous Emission Monitoring Systems (CEMS)

Regulation

% of emissions covered by the system

Compliance period

Evidence of submission

CC8.7

Please indicate the verification/assurance status that applies to at least one of your reported Scope 2 emissions figures Third party verification or assurance process in place

CC8.7a

Please provide further details of the verification/assurance undertaken for your location-based and/or market-based Scope 2 emissions, and attach the relevant statements

Location-based or market-based figure?

Verification

or assurance

cycle in place

Status in

the current

reporting year


or assurance



Relevant standard

Proportion

of reported Scope 2

emissions verified

(%)

Location-based


assurance


1-2 ISO14064-3 100

Location-based or market-based figure?

Verification

or assurance

cycle in place

Status in

the current

reporting year


or assurance



Relevant standard

Proportion of

reported Scope 2

emissions verified

(%)

Market-based


assurance


1-2 ISO14064-3 100

CC8.8

Please identify if any data points have been verified as part of the third party verification work undertaken, other than the verification of emissions figures reported in CC8.6, CC8.7 and CC14.2

Additional data points verified

Comment

Other: Scope 3 Other indirect GHG emissions (Scope 3) are verified via our third party and provided as verified in our Assurance Report.

CC8.9

Are carbon dioxide emissions from biologically sequestered carbon relevant to your organization? Yes

CC8.9a

Please provide the emissions from biologically sequestered carbon relevant to your organization in metric tonnes CO2 1011.69

Further Information

Page: CC9. Scope 1 Emissions Breakdown - (1 Jan 2016 - 31 Dec 2016)

CC9.1

Do you have Scope 1 emissions sources in more than one country? Yes

CC9.1a

Please break down your total gross global Scope 1 emissions by country/region

Country/Region

Scope 1 metric tonnes CO2e

United States of America 18160.92 Canada 153.38 Switzerland 337.22 United Kingdom 122.57 France 0 Germany 0 Italy 35.98 Spain 1.03

Country/Region

Scope 1 metric tonnes CO2e

Japan 0

CC9.2

Please indicate which other Scope 1 emissions breakdowns you are able to provide (tick all that apply) By facility By GHG type By activity

CC9.2a

Please break down your total gross global Scope 1 emissions by business division

Business division

Scope 1 emissions (metric tonnes CO2e)

CC9.2b

Please break down your total gross global Scope 1 emissions by facility

Facility


Latitude

Longitude

Cambridge 526.76 42.3955 -71.1492 Berkeley Heights (300) 141.12 40.6609 -74.4196 Berkeley Heights (400) 150.63 40.661 -74.4209 Boudry 315.18 46.95 6.8333 Cedar Knolls 9.44 40.8218 -74.45 London 122.57 51.5117 -0.4468 Madrid 0 40.4112 -4.4963 Milan 35.98 45.4412 9.1028 Mississauga 153.38 43.6029 -79.7423 Munich 0 48.1353 11.688 Overland Park 33.95 38.9309 -94.6919 Paris 0 48.8697 2.3364 Phoenix 1596.07 33.4484 -112.074 San Diego 889.46 32.7153 -117.1573 San Francisco 2.97 37.7686 -122.3955 Sevilla 1.03 37.4082 -6.0046 Summit East 3321.07 40.7161 -74.3625 Summit West 11019.33 40.7247 -74.3792 Tokyo 0 35.6825 139.7643 Warren (7 Powder Horn Drive) 470.13 40.6342 -74.5004 Zofingen 22.04 47.2886 7.9392

CC9.2c

Please break down your total gross global Scope 1 emissions by GHG type

GHG type


GHG type


CO2 17583.35 CH4 16.58 N2O 22.95 HFCs 725.85

CC9.2d

Please break down your total gross global Scope 1 emissions by activity

Activity


Stationary Combustion 18021.18 Mobile Combustion 18.97 Refrigeration and Fire Suppression 725.85 Laboratory Chemicals 45.15

Further Information

Page: CC10. Scope 2 Emissions Breakdown - (1 Jan 2016 - 31 Dec 2016)

CC10.1

Do you have Scope 2 emissions sources in more than one country? Yes

CC10.1a

Please break down your total gross global Scope 2 emissions and energy consumption by country/region

Country/Region


(metric tonnes CO2e)

Scope 2, market-based (metric tonnes CO2e)

Purchased and consumed

electricity, heat, steam or cooling

(MWh)

Purchased and consumed low carbon electricity, heat, steam or

cooling accounted in market-based approach (MWh)

United States of America 37687.75 11730.79 27089.15 66337.04

Switzerland 270.03 42.48 223.08 5293.38 Canada 169.83 169.83 1823.77 0 France 22.79 22.79 274.64 0 Spain 135.58 135.58 443.21 443.21 Italy 79.52 79.75 185.85 0 Germany 397 397 739.51 0 United Kingdom 660.53 660.53 1332.1 0 Japan 122.61 122.61 222.18 222.18

CC10.2

Please indicate which other Scope 2 emissions breakdowns you are able to provide (tick all that apply) By facility By activity

CC10.2a

Please break down your total gross global Scope 2 emissions by business division

Business division

Scope 2, location-based (metric tonnes CO2e)


CC10.2b

Please break down your total gross global Scope 2 emissions by facility

Facility



Cambridge 149.87 149.87 Berkeley Heights (300 Connell) 188.41 188.41 Berkeley Heights (400 Connell) 241.88 241.88 Boudry 227.55 0 Cedar Knolls 15.36 15.36 London 660.53 660.53 Madrid 45.96 45.96 Milan 79.52 79.52 Mississauga 169.83 169.83 Munich 397 397 Overland Park 327.21 327.21 Paris 22.79 22.79 Phoenix 7591.3 7591.3 San Diego 2523.36 2523.36 San Francisco 329.79 329.79 Sevilla 89.62 89.62

Facility



Summit East 5627.14 0 Tokyo 122.61 122.61 Warren (7 Powder Horn Drive) 1450.99 0 Zofingen 42.48 42.48 Summit West 19242.46 363.63

CC10.2c

Please break down your total gross global Scope 2 emissions by activity

Activity



Purchased Electricity 39545.64 13361.13 Purchased Steam 32.89 32.89

Further Information

Page: CC11. Energy

CC11.1

What percentage of your total operational spend in the reporting year was on energy?

CC11.2

Please state how much heat, steam, and cooling in MWh your organization has purchased and consumed during the reporting year

Energy type

MWh

Heat 0 Steam 142.33 Cooling 0

CC11.3

Please state how much fuel in MWh your organization has consumed (for energy purposes) during the reporting year 108701.27

CC11.3a

Please complete the table by breaking down the total "Fuel" figure entered above by fuel type

Fuels

MWh

Diesel/Gas oil 660.79 Liquefied petroleum gas (LPG) 5.25 Motor gasoline 70.37 Natural gas 104626.75

Fuels

MWh

Propane 5.25 Wood or wood waste 3332.86

CC11.4

Please provide details of the electricity, heat, steam or cooling amounts that were accounted at a low carbon emission factor in the market-based Scope 2 figure reported in CC8.3a

Basis for applying a low carbon emission factor

MWh consumed associated with

low carbon electricity, heat, steam or cooling

Emissions factor (in units of metric tonnes

CO2e per MWh)

Comment

Off-grid energy consumption from an on-site installation or through a direct line to an off-site generator owned by another company

3332.87 0 The Boudry facility used wood pellets as a source of fuel to heat the building.

Energy attribute certificates, Guarantees of Origin 5293.38 0

The Boudry facility purchased 100% of its electricity (57,200 kWh through certified renewable electricity from Sun Valley and 5,236,179 kWh of hydropower from Eli10) as part of their ongoing commitment to reducing carbon emissions and optimizing energy efficiency through the Swiss Private Sector Energy Agency’s Voluntary Climate Protection Program. The certificate for this energy has been certified through Naturemade Star.

Off-grid energy consumption from an on-site installation or through a direct line to an off-site generator owned by another company

12 0 On-site solar panels at the Summit facility generated and provided 12 MWh of electricity to the main building.

Energy attribute certificates, Renewable Energy Certificates (RECs)

14381 0 The Summit East facility purchased 100% of its electricity through certified renewable electricity from Constellation Energy as part of the ongoing commitment to reduce carbon emissions. The total quantity of electricity purchased through this agreement

Basis for applying a low carbon emission factor

MWh consumed associated with

low carbon electricity, heat, steam or cooling

Emissions factor (in units of metric tonnes

CO2e per MWh)

Comment

was 14,381 MWh.


48247 0

The Summit West facility purchased 100% of its electricity through certified renewable electricity from Constellation Energy as part of the ongoing commitment to reduce carbon emissions. The total quantity of electricity purchased through this agreement was 48,247 MWh.


3708 0

The Warren facility purchased 100% of its electricity through certified renewable electricity from Constellation Energy as part of the ongoing commitment to reduce carbon emissions. The total quantity of electricity purchased through this agreement was 3708 MWh.

CC11.5

Please report how much electricity you produce in MWh, and how much electricity you consume in MWh

Total electricity

consumed (MWh)

Consumed

electricity that is purchased (MWh)

Total electricity

produced (MWh)

Total renewable

electricity produced (MWh)

Consumed renewable

electricity that is produced by

company (MWh)

Comment

104712.88 103963.9 748.98 748.98 748.98 One solar energy installation at Summit East and one solar energy installation at Summit West

Further Information

Page: CC12. Emissions Performance

CC12.1

How do your gross global emissions (Scope 1 and 2 combined) for the reporting year compare to the previous year? Increased

CC12.1a

Please identify the reasons for any change in your gross global emissions (Scope 1 and 2 combined) and for each of them specify how your emissions compare to the previous year

Reason

Emissions value (percentage)

Direction of change

Please explain and include calculation

Emissions reduction activities 4.8 Decrease This is directly attributed to the large increase in purchasing of low-carbon electricity

at our sites.

Divestment Unknown quantity but attributed at other facilities We divested out of the following locations: 33 Tech, Warren, NJ Bedford, MA 200 Connell, BH, NJ Cedar Knolls

Acquisitions One acquisition: Cambridge, MA Transfer of facility from Bedford, MA to this location Mergers Change in output Change in methodology Change in boundary Change in physical operating conditions 33.7 Increase Changes in business practices, relocation of employees, and employee habits can

affect resultant emissions generated at our facilities Unidentified Other

CC12.1b

Is your emissions performance calculations in CC12.1 and CC12.1a based on a location-based Scope 2 emissions figure or a market-based Scope 2 emissions figure? Market-based

CC12.2

Please describe your gross global combined Scope 1 and 2 emissions for the reporting year in metric tonnes CO2e per unit currency total revenue

Intensity figure =

Metric numerator (Gross global combined

Scope 1 and 2 emissions)

Metric denominator:

Unit total revenue

Scope

2 figure used

% change

from previous

year

Direction of change

from previous

year

Reason for change

0.000002865 metric tonnes CO2e 11229000000 Market-based 9.4 Increase

Company revenue growth increased between 2015 and 2016 and emissions increased due to changes in physical space and acquisition of the new Summit West campus. These two items combined lead to an increase in this intensity figure. Note that the comparison is based on 2015 Scope 1 and Scope 2 emissions of 10,390 and 14,523 metric tons CO2e, respectively, for a grand total of 24,947 metric tons CO2e. The Scope 1 emissions value was entered incorrectly in last year’s CDP submittal (entered as a duplicate of 14,523 metric tons CO2e) in Secion CC7.1 and CC8.3. The Scope 1 breakdown in section CC9 contained accurate data.

CC12.3

Please provide any additional intensity (normalized) metrics that are appropriate to your business operations

Intensity figure =

Metric numerator (Gross global combined

Scope 1 and 2 emissions)

Metric denominator

Metric

denominator: Unit total

Scope

2 figure used

% change

from previous

year

Direction of

change from

previous year

Reason for change

5.478 metric tonnes CO2e

full time equivalent (FTE) employee

4966 Market-based 18.24 Increase

Company employee population of the scoped facilities increased between 2015 and 2016 and emissions increased due to changes in physical space and acquisition of the new Summit West campus. These two items combined lead to an increase in this intensity figure. Note that the comparison is based on 2015 Scope 1 and Scope 2 emissions of 10,390 and 14,523 metric tons CO2e, respectively, for a grand total of 24,947 metric tons CO2e. The Scope 1 emissions value was entered incorrectly in last year’s CDP submittal (entered as a duplicate of 14,523 metric tons CO2e) in Secion CC7.1 and CC8.3. The Scope 1 breakdown in section CC9 contained accurate data.

0.00996 metric tonnes CO2e square foot 3229432.3 Market-based 22.83 Increase

The facility area that the company utilizes through either owned or leased space increased slightly between 2015 and 2016. Note that the comparison is based on 2015 Scope 1 and Scope 2 emissions of 10,390 and 14,523 metric tons CO2e, respectively, for a grand total of 24,947 metric tons CO2e. The Scope 1 emissions value was entered incorrectly in last year’s CDP submittal (entered as a duplicate of 14,523 metric tons CO2e) in Secion CC7.1 and CC8.3. The Scope 1 breakdown in section CC9 contained accurate data.

Further Information

Page: CC13. Emissions Trading

CC13.1

Do you participate in any emissions trading schemes? No, and we do not currently anticipate doing so in the next 2 years

CC13.1a

Please complete the following table for each of the emission trading schemes in which you participate

Scheme name

Period for which data is supplied

Allowances allocated

Allowances purchased

Verified emissions in metric tonnes CO2e

Details of ownership

CC13.1b

What is your strategy for complying with the schemes in which you participate or anticipate participating?

CC13.2

Has your organization originated any project-based carbon credits or purchased any within the reporting period? No

CC13.2a

Please provide details on the project-based carbon credits originated or purchased by your organization in the reporting period

Credit origination

or credit purchase

Project type

Project identification

Verified to which standard

Number of credits (metric

tonnes CO2e)

Number of credits (metric tonnes

CO2e): Risk adjusted volume

Credits canceled

Purpose, e.g. compliance

Further Information

Page: CC14. Scope 3 Emissions

CC14.1

Please account for your organization’s Scope 3 emissions, disclosing and explaining any exclusions

Sources of Scope 3

emissions

Evaluation status

metric tonnes CO2e

Emissions calculation methodology

Percentage of

emissions calculated using data obtained

from suppliers or value

chain partners

Explanation

Purchased goods and services

Relevant, not yet calculated

Emissions from purchased goods and services include those activities associated with the following suppliers: Medical Devices, Engineering and Construction Services, Raw Goods and Materials for Processing and Manufacturing Celgene’s pharmaceutical products, Consulting Services. Additional and accurate data must be obtained from

Sources of Scope 3

emissions

Evaluation status

metric tonnes CO2e


Percentage of



chain partners

Explanation

these sources within our upstream value chain and suppliers before a reasonable emissions inventory from these sources can be developed.

Capital goods Relevant, not yet calculated

Emissions from capital goods include capital products used at facilities where Celgene has direct control/ownership or has installed its own capital products. We are currently researching avenues for constructing an accurate and reasonable emissions inventory for these sources. We are also researching available tools that allow easy conversion of known items (such as infrastructure expenses for capital goods) into proportionate estimates for emissions generated from capital goods.

Fuel-and-energy-related activities (not included in Scope 1 or 2)

Not relevant, explanation provided

Fuel- and energy-related activities (not included in Scope 1 or 2) are considered to be minimal. In addition, the GHG emissions from fuel and energy production and transportation would not be material for Celgene operations as we do not have control over transmission and distribution losses.

Upstream transportation and distribution


Additional data from suppliers that perform transportation and distribution activities within Celgene’s upstream value chain must be obtained before a reasonable emissions inventory can be developed.

Sources of Scope 3

emissions

Evaluation status

metric tonnes CO2e


Percentage of



chain partners

Explanation

Waste generated in operations

Relevant, calculated 1444.07

Solid waste and recycling waste generation accounting occurs at the all offices at this time through either direct monitoring or estimating using referenced and verified factors. These actual and estimated annual solid waste generation quantities are used to calculate GHG emissions. The methodology (including emission factors, other variables) used to calculate emissions from incinerated solid waste is derived from the Local Government Operations Protocol v1.1 (May 2010) and USEPA’s Greenhouse Gas Mandatory Reporting Rule Subpart C (2009). The methodology used to calculate emission from landfill processes is derived from USEPA’s Solid Waste Management and Greenhouse Gases: A Life-Cycle Assessment of Emissions and Sinks, 3rd Edition (September 2006). GWPs source is the IPCC Fourth Assessment Report (SAR - 100 year).

100.00%

This source of Scope 3 emissions is associated with Celgene’s contracted municipal solid waste disposal that is ultimately sent to an off-site incineration facility. At other facilities, estimations are used to calculate the quantity of solid waste generation on a daily basis. Celgene has implemented waste recycling and organic collection programs in an effort to reduce the quantity of waste being disposed.

Business travel Relevant, calculated 19881.71

Actual airline miles by segment length were collected for Celgene companywide through a corporate travel system. Emission factors source is GWPs source is the IPCC 4th Assessment Report (SAR - 100 year). Celgene has three shuttle vans that are operated by a 3rd Party that perform business travel services. These shuttle vans transport people to and from various New Jersey locations for Celgene business purposes only. Actual miles for these shuttles were estimated

100.00%

This source of Scope 3 emissions includes official Celgene employee business travel. Methods of business travel typically include airplane, shuttle, taxi cab/limo and rental vehicles, but could also include some personal vehicle, bus or rail travel.

Sources of Scope 3

emissions

Evaluation status

metric tonnes CO2e


Percentage of



chain partners

Explanation

based upon the travel schedule and using a mapping program to determine miles traveled each day. The shuttle fuel use is estimated by applying the USEPA fuel efficiency provided at www.fuelecononmy.gov to the total mileage. Therefore the shuttle data is considered to be good quality Emission factors source is Climate Leaders GHG Protocol, Direct Emissions from Mobile Combustion Sources (May 2008). GWPs source is the IPCC Fourth Assessment Report (SAR - 100 year).

Employee commuting

Relevant, calculated 11119.5

Employee commuting miles were collected using a survey provided to all employees at the facilities within our boundary. This survey asked for the type of vehicle used and the average mileage traveled each standard work day. The employee commuting data collected are actual values provided directly from the employees. Extrapolated values were calculated to provide a country-wide estimate based upon the data provided in the survey. Additionally, the shuttle service vans, mentioned above, that perform employee commuting services (from the local train station in New Jersey to local facilities) are also included in these calculations. Mileage for these shuttle vans is based upon the schedule provided by the 3rd Party operator and by using a mapping program. The shuttle mileage data used are estimated values based upon scheduling of the shuttled

100.00%

This source of Scope 3 emissions includes Celgene employee travel from their places of residence to their respective work locations/facilities. Methods of employee commuting include the use of personal vehicles or company-provided transportation from places of residence or public transport to places of work.

Sources of Scope 3

emissions

Evaluation status

metric tonnes CO2e


Percentage of



chain partners

Explanation

provided by the 3rd Party operator. The shuttle fuel use is estimated by Applying the USEPA fuel efficiency provided at www.fuelecononmy.gov to the total mileage. Therefore the shuttle data is considered to be good quality. Emission factors source is GWPs source is the IPCC Fourth Assessment Report (SAR - 100 year).

Upstream leased assets


Our leased asset carbon emissions are included in our Scope 1 &2 data or accounted for in the uncertainty analyses.

Downstream transportation and distribution


Additional data must be obtained from our downstream supply chain activities before a reasonable emissions inventory from this source can be developed.

Processing of sold products


Celgene does not report emissions associated with processing of sold products as this category is not considered relevant to our inventory. Celgene adheres to the recommendation from the “Guidance for Measuring & Reporting Corporate Value Chain GHG Emissions in the Chemical Sector” which states that “the diversity of applications [sold products] generally cannot be reasonably tracked. Therefore, at this time category 10 [Processing of Sold Products] is not required.”

Use of sold products


It is readily assumed that the end users of Celgene’s pharmaceutical products do not contribute significant GHG emissions.

Sources of Scope 3

emissions

Evaluation status

metric tonnes CO2e


Percentage of



chain partners

Explanation

End of life treatment of sold products


It is readily assumed that the disposal of Celgene’s pharmaceutical products do not contribute significant GHG emissions from their disposal.

Downstream leased assets


Celgene has only one facility that is currently leased to another entity. This facility has been identified and reviewed and does not contribute significant GHG emissions to Celgene’s total Scope 3 emissions.

Franchises Not relevant, explanation provided Celgene is not an external franchisor.

Investments Not relevant, explanation provided

Celgene is not an investor or a company that provides financial services

Other (upstream) Other (downstream)

CC14.2

Please indicate the verification/assurance status that applies to your reported Scope 3 emissions Third party verification or assurance process in place

CC14.2a

Please provide further details of the verification/assurance undertaken, and attach the relevant statements

Verification

or assurance cycle in place

Status in

the current reporting

year

Type of

verification or

assurance


Page/Section

reference

Relevant standard

Proportion of

reported Scope 3 emissions verified (%)


assurance


1-2 ISO14064-3 100

CC14.3

Are you able to compare your Scope 3 emissions for the reporting year with those for the previous year for any sources? Yes

CC14.3a

Please identify the reasons for any change in your Scope 3 emissions and for each of them specify how your emissions compare to the previous year

Sources of

Scope 3 emissions

Reason for

change

Emissions value

(percentage)

Direction of change

Comment

Waste generated in operations

Change in physical operating conditions

2.18 Increase Changes in business practices, relocation of employees, and employee habits can affect resultant emissions generated at our facilities.

Business travel

Change in output 7.92 Decrease

The decrease in business travel emissions can be directly attributed to the significant reduction in long-haul air travel for the scoped facilities between 2015 and 2016. The reason for the decrease is business travel cannot be attributed to any one particular business directive or strategy, but may be caused by the increase in capabilities in our offices for telecommunications.

Employee commuting

Change in output 51.05 Increase

The increase in employee commuting mileage and resulting emissions is primarily due to a larger response in our employee commuting survey and a 9 percent increase in employee population. Additional factors include the extrapolation used for the employee commuting survey results and a shift in mindset of employees towards more personal vehicle commuting.

CC14.4

Do you engage with any of the elements of your value chain on GHG emissions and climate change strategies? (Tick all that apply) No, we do not engage

CC14.4a

Please give details of methods of engagement, your strategy for prioritizing engagements and measures of success

CC14.4b

To give a sense of scale of this engagement, please give the number of suppliers with whom you are engaging and the proportion of your total spend that they represent

Type of engagement

Number of suppliers

% of total spend (direct and indirect)

Impact of engagement

CC14.4c

Please explain why you do not engage with any elements of your value chain on GHG emissions and climate change strategies, and any plans you have to develop an engagement strategy in the future Further evaluation of the potential impact of Celgene’s value chain on GHG emissions is needed before a climate change engagement strategy for our value chain can be developed. This evaluation needs to include resources, information, and data from various departments within our company, especially our Strategic Sourcing department that handles our supply chain activities. Once we have the necessary information on our suppliers, our engagement practices will mirror those of other pharmaceutical companies and include communications on emission reduction strategies, supplier assessment of their sustainability programs, and grievance mechanisms for aspects and topics related to climate change.

Further Information

Module: Sign Off

Page: CC15. Sign Off

CC15.1

Please provide the following information for the person that has signed off (approved) your CDP climate change response

Name

Job title

Corresponding job category

Janos Angeli Director of Engineering, Construction and Carbon Management Environment/Sustainability manager

Further Information

CDP 2017 Climate Change 2017 Information Request